Proposal
Consultation Paper on Modernizing the Consumer Protection Act, 2002
Regulation Number(s):
N/A
Instrument Type:
Proposal
Bill or Act:
Consumer Protection Act, 2002
Summary of Decision:
On December 6, 2023, the new Consumer Protection Act, 2023 (CPA, 2023) received Royal Assent as part of the Better for Consumers, Better for Businesses Act, 2023 to:
• Strengthen consumer rights and protections,
• Streamline and clarify requirements to make it easier for businesses to comply with consumer protection rules, and
• Modernize rules to better suit today's evolving marketplace.
The new Consumer Protection Act, 2023 requires regulations to be developed and in place before it can be proclaimed into force.
Until the new Consumer Protection Act, 2023 comes into force, the existing Consumer Protection Act, 2002 remains in force to protect consumers.
After the regulations are developed and are in place, the new Consumer Protection Act, 2023 and its regulations would come into force on a date to be set by proclamation.
On December 12, 2024, the ministry posted a consultation on the Regulatory Registry for regulations under the Consumer Protection Act, 2023. As part of that consultation, the ministry is seeking feedback from the public, businesses, and other stakeholders on a first phase of regulatory proposals to support implementation of the CPA, 2023. Please view the below Regulatory Registry link to access the consultation paper posted by the ministry.
• Strengthen consumer rights and protections,
• Streamline and clarify requirements to make it easier for businesses to comply with consumer protection rules, and
• Modernize rules to better suit today's evolving marketplace.
The new Consumer Protection Act, 2023 requires regulations to be developed and in place before it can be proclaimed into force.
Until the new Consumer Protection Act, 2023 comes into force, the existing Consumer Protection Act, 2002 remains in force to protect consumers.
After the regulations are developed and are in place, the new Consumer Protection Act, 2023 and its regulations would come into force on a date to be set by proclamation.
On December 12, 2024, the ministry posted a consultation on the Regulatory Registry for regulations under the Consumer Protection Act, 2023. As part of that consultation, the ministry is seeking feedback from the public, businesses, and other stakeholders on a first phase of regulatory proposals to support implementation of the CPA, 2023. Please view the below Regulatory Registry link to access the consultation paper posted by the ministry.
Analysis of Regulatory Impact:
The proposals in this consultation paper are under consideration for a new Act. If the ministry receives approval to proceed with the proposals, the following are anticipated impacts:
• The new CPA would protect consumers with clearer requirements to enable improved compliance by business and strengthen enforcement, providing greater confidence for consumers.
• Most businesses providing goods and services directly to consumers would be impacted by a new Act. Rules that apply to the maximum number of businesses are general rules related to the prohibited use of unfair practices, for which there are no costs to comply.
• In some cases, proposals would reduce burden for businesses and support competition by supporting a level playing field with consistent rules, targeting bad actors, and avoiding unnecessary regulatory burden for good actors.
• Some changes could result in short-term costs for some businesses; however, these changes are important for the longer-term benefit of modernizing the act and better protecting consumers. Businesses would be consulted on the specifics of regulations and on the appropriate amount of time required to bring their operations into compliance.
• To implement legislative proposals, regulations would need to be developed. The ministry would provide baseline and projected costs during the regulatory development phase and consultation, as it is at that stage that the precise nature of the requirements would be known.
• The new statute would better align with the evolving marketplace and is intended to bolster consumer confidence and support economic growth.
• The new CPA would protect consumers with clearer requirements to enable improved compliance by business and strengthen enforcement, providing greater confidence for consumers.
• Most businesses providing goods and services directly to consumers would be impacted by a new Act. Rules that apply to the maximum number of businesses are general rules related to the prohibited use of unfair practices, for which there are no costs to comply.
• In some cases, proposals would reduce burden for businesses and support competition by supporting a level playing field with consistent rules, targeting bad actors, and avoiding unnecessary regulatory burden for good actors.
• Some changes could result in short-term costs for some businesses; however, these changes are important for the longer-term benefit of modernizing the act and better protecting consumers. Businesses would be consulted on the specifics of regulations and on the appropriate amount of time required to bring their operations into compliance.
• To implement legislative proposals, regulations would need to be developed. The ministry would provide baseline and projected costs during the regulatory development phase and consultation, as it is at that stage that the precise nature of the requirements would be known.
• The new statute would better align with the evolving marketplace and is intended to bolster consumer confidence and support economic growth.
Further Information:
Modernizing Consumer Protection in Ontario
Consumer Protection Act, 2002, S.O. 2002, c. 30, Sched. A
Better for Consumers, Better for Business Act, 2023, S.O. 2023, c. 23 - Bill 142
December 2024 Consultation Paper
Proposal Number:
23-MGCS001
Posting Date:
February 6, 2023
Summary of Proposal:
The Ontario government is considering how to improve the Consumer Protection Act (CPA/the Act). The CPA is the primary piece of legislation that sets out rules for consumer protection in Ontario. It governs most personal and household transactions by consumers, including buying furniture in a store, shopping for clothes online, buying goods sold door-to-door, and renovating homes. The CPA's rules support a fair and competitive marketplace where consumers make their own choices without being subject to unfair business practices.
In 2019, the Government of Ontario announced the Rebuilding Consumer Confidence Strategy, which included the first comprehensive review of the CPA in 15 years. The Ministry of Public and Business Service Delivery (the ministry) is continuing the CPA review process and examining how to update the Act to strengthen protection for consumers, adapt to changing technology and marketplace innovations, and streamline and clarify requirements to improve consumer and business understanding and compliance. Updating the CPA will enhance consumer protection and reduce burden for the retail community in general, while addressing specific problems more effectively than the current law.
This Consultation Paper contains many of the proposals included in the 2020 consultation paper. The paper also includes proposals that have been updated to reflect feedback from respondents to the previous consultation, as well as some new proposals.
The paper expands on previous consultation proposals and addresses:
o Broad consumer protection and empowerment, including consolidated contract disclosure rules, protections and remedies against unfair practices, stronger consumer rights, and opportunities to make it easier for consumers to unsubscribe or exit a contract;
o Sector-specific protections, including exit options for timeshare owners, stronger protections for consumers in long-term leases, and improved rules to address issues relating to the use of Notices of Security Interest by some businesses.
In addition to the proposals in this paper, changes to the CPA would include streamlining the structure of the Act and regulations to make it easier for consumers and businesses to understand their rights, responsibilities, and obligations.
We welcome your responses to the questions in this paper and any additional comments or suggestions on the modernization of the CPA. Please provide examples or evidence to support your suggestions, where possible.
You may download this paper and submit your completed responses by March 17, 2023. You can submit comments by email to consumerpolicy@ontario.ca or by mail to the address provided.
In 2019, the Government of Ontario announced the Rebuilding Consumer Confidence Strategy, which included the first comprehensive review of the CPA in 15 years. The Ministry of Public and Business Service Delivery (the ministry) is continuing the CPA review process and examining how to update the Act to strengthen protection for consumers, adapt to changing technology and marketplace innovations, and streamline and clarify requirements to improve consumer and business understanding and compliance. Updating the CPA will enhance consumer protection and reduce burden for the retail community in general, while addressing specific problems more effectively than the current law.
This Consultation Paper contains many of the proposals included in the 2020 consultation paper. The paper also includes proposals that have been updated to reflect feedback from respondents to the previous consultation, as well as some new proposals.
The paper expands on previous consultation proposals and addresses:
o Broad consumer protection and empowerment, including consolidated contract disclosure rules, protections and remedies against unfair practices, stronger consumer rights, and opportunities to make it easier for consumers to unsubscribe or exit a contract;
o Sector-specific protections, including exit options for timeshare owners, stronger protections for consumers in long-term leases, and improved rules to address issues relating to the use of Notices of Security Interest by some businesses.
In addition to the proposals in this paper, changes to the CPA would include streamlining the structure of the Act and regulations to make it easier for consumers and businesses to understand their rights, responsibilities, and obligations.
We welcome your responses to the questions in this paper and any additional comments or suggestions on the modernization of the CPA. Please provide examples or evidence to support your suggestions, where possible.
You may download this paper and submit your completed responses by March 17, 2023. You can submit comments by email to consumerpolicy@ontario.ca or by mail to the address provided.
Contact Address:
Consumer Protection Act Review
Manager, Consumer Policy Unit
Ministry of Public and Business Service Delivery
56 Wellesley Street West - 6th Floor
Toronto, ON, M7A 1C1
Manager, Consumer Policy Unit
Ministry of Public and Business Service Delivery
56 Wellesley Street West - 6th Floor
Toronto, ON, M7A 1C1
Effective Date:
December 6, 2023
Decision:
Approved